DECA Business Concepts

Enclosure notation

At the bottom of a business letter indicating that something is enclosed.

Newspaper ads advantage

Higher consumer trust, physical retention, and less visual competition compared to TV.

Slotting allowance

A one-time fee manufacturers pay retailers to secure shelf space for new items.

Upwards communication

Flow of information from subordinates to superiors.

Downward communication

Flow of information from superiors to subordinates.

Vertical communication

Flow of information up and down an organization's chain of command.

Horizontal communication

Peer-to-peer exchange of information between individuals at the same level.

Asset management firm

Invests money for individuals in exchange for a management fee.

Competitive bidding

Competing to obtain lower prices from bidders.

Scanner fraud

Overcharging customers at the point of payment (POP).

Fiduciary relationship

A legally binding agreement to strictly act in another party's best interest.

Mix (business)

An assortment of goods.

Time value of money

Concept considered when currency fluctuates over time, influencing savings choices.

Environmental scanning

An element of situation analysis.

Ideal market exposure

Making a product available to satisfy a market without oversaturating it.

Memorandum (memo)

A written message for internal communications within an organization.

Letter of application

A cover letter sent alongside a resume, often including mutual contacts.

Executive summary

A concise overview communicating important information upfront to decision-makers.

Attribute listing

A creative problem-solving technique breaking a product or challenge into parts.

Keynesian Theory of unemployment

Unemployment is primarily caused by deficient aggregate demand.

Central Banks

Authorities that manage money supply, set policy interest rates, and supervise banks.

Retail Banks

Institutions handling everyday consumer needs like checking accounts and mortgages.

Commercial Banks

Financial institutions focusing on business, corporate, and government clients.

Investment Banks

Firms assisting with raising capital through stocks, bonds, underwriting, and M&A.

Credit Unions

Member-owned, not-for-profit financial institutions with lower fees or better rates.

Transfer payment

A grant given by government to support public policy goals.

Response error

A mistake, bias, or inaccuracy in how a participant or system answers a prompt.

False positive

Wrongly concluding that a result is present when it is actually not.

Intranet

A private computer network.

Internet

A public computer network (worldwide web).

Matrix organizational structure

An organizational structure with multiple managerial accountability and responsibility.

Diminishing returns

When additional inputs produce progressively smaller increases in output.

Fixed costs

Expenses that stay the same no matter how much you produce.

Variable costs

Expenses that directly change with your level of production.

Sales forecast

An estimate of future sales helping determine production quantities.

Sales quota

A specific sales target expected to be achieved.

Sales prospect

A potential customer.

Sales lead

Information about a potential customer.

Sales promotion

A short-term incentive designed to encourage purchases.

Primary data

Data personally collected for a specific research purpose.

Secondary data

Data already collected by someone else and reused for research.

Tertiary data

Information that summarizes or directs people to primary or secondary sources.

Semantic differential rating scales

Tools used to measure attitudes.

Bilateral contract

A contract where both parties make promises to each other.

Synectics

A creative problem-solving technique using analogies and comparisons.

Tying agreement

Requiring a customer to buy a second product to purchase a primary one (illegal).

Psychographic

The study of people according to attitudes, aspirations, values, and lifestyles.

Positioning innovation

Changing how an existing product is framed without changing the product.

Appropriation

Allocation of specific funds for a designated business purpose or project.

Manguson-Moss Warranty Law

Provides consumers with the right to repair products without voiding warranty.

Logistics management

Planning, executing, and controlling the efficient movement and storage of goods, services, and information.

Capacity planning

Determines the product capacity needed to meet changing demands for products or services.

Database marketing

Direct marketing that uses collections of customer and prospect data to deliver tailored, highly targeted messaging.

examples of database marketing

gathering customer names, contacts, purchase and web history into a CRM

Trend analysis

Collecting historical data over time to spot consistent patterns or directional shifts.

Prospecting

Finding potential candidates who match your ideal profile.

Needs assessment

Asking specific questions to uncover a prospect's goal.

Break-even point

Analyzing cash flow to determine if they can afford to launch a new product line.

Low morale

state of disengagement, and a lack of enthusiasm among individuals within a group

descriptive statistics

statistics that summarize the data collected in a study

Qualitative Analysis

research that uses open-ended interviewing to understand attitudes, opinions, feelings, and behavior.

examples of qualitative analysis

conducting a survey to determine member satisfaction and understand human behaviour

Quantitative Analysis

measures variables through numerical value (hypothesizes a population)

example of quantitative analysis

a percent of customers who prefer a product using a survey for 1000 people

market segmentation

Dividing a market into distinct groups who share similar needs.

What categories does market segmentation divide into?

demographic, psychographic, geographic

market research

understanding consumer behaviour, the market size, location, and trends before launching a product or campaign

what insights are taken during market research

previous product launches, primary and secondary sources

prospecting

finding potential candidates

needs assessment

asking specific questions to uncover a prospects goal